WASHINGTON, July 28 (Reuters) – The Biden administration on Friday proposed to hike fuel economy standards by 2032 to a fleet-wide average of 58 miles per gallon as it seeks to cut greenhouse gas emissions and reduce fuel use.
The National Highway Traffic Safety Administration (NHTSA) proposal, which covers the 2027 through 2032 model years, would boost Corporate Average Fuel Economy (CAFE) requirements by 2% per year for passenger cars and 4% per year for light trucks.
The EPA said its proposed 2027-2032 standards would cut emissions by 56%, or 13% annual average pollution cuts and result in 67% of new vehicles in 2032 being electric.
NHTSA estimates its proposal would cut gasoline consumption by 88 billion gallons through 2050.
NHTSA wants comment on five alternatives, including not hiking requirements to raising them annually by 6% for cars and 8% for light trucks. The agency said its preferred alternative “comes at a cost we believe the market can bear without creating consumer acceptance or sales issues.”
The Alliance for Automotive Innovation representing General Motors (GM.N), Toyota Motor (7203.T), Volkswagen (VOWG_p.DE) and others, asked EPA to soften its emissions proposal saying it is “neither reasonable nor achievable,” while Tesla (TSLA.O) said EPA should make it tougher. The alliance Friday said it was reviewing NHTSA’s proposal.
